Types of Grants and Funding Sources
Competitive
Grants
This type of grant is awarded for specific types of research,
demonstration, training, or service to program participants. Any
organization applying for a competitive grant must specify
projected costs as well as program details and timelines.
Noncompetitive (Entitlement)
Grants
A noncompetitive grant resembles a contract more than a
grant. These grants are automatically awarded to institutions
which qualify for legally defined formulas. Organization agree
to conduct activities in order to achieve a specific purpose
based on an established program. The organization completes
forms and assurances to secure funds.
Formula Grants
This type of grant is sometimes referred to as a state
administered program. Formula grants are noncompetitive and
often based on programs directed by population, per capita
income, or enrollment from federal agencies. These grants are
primarily awarded to state governments and have specific dollar
amounts attached to them.
Block Grants
Block grants are dollars awarded by
the federal government to state and local governments. Although
federal guidelines are imposed, state and local governments are
awarded discretionary authority over the uses of funds. Block
grants address specific issues and needs within a certain
jurisdiction this jurisdiction is responsible for monitoring and
evaluation results.
Project, Categorical, and Research Grants
These three grants are more restrictive than block grants. Funds
are designated to support defined areas of interest and are more
often short-term projects. They may be competitive or
noncompetitive. Research grants are made to educational
institutions and/or individuals working on specific research
projects.
Contracts
Similar to a grant, contracts involve specific priorities
outlined by the government. Specifications are made from a
certain level of government and contracts are awarded on a
lowest-bid basis.
Sources of Grant Funds
Typical Grant Purposes
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Government Programs
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-- a group of services performed by the government, providing funds to those who meet the
qualifications set for the program.
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Private Foundation
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-- as designated by federal law, a foundation whose support is from relatively
few sources and typically from a single source (usually a person, family, or company) and
that makes grants to other nonprofit organizations rather than operating its own programs.
Its annual revenues are usually derived from earnings on investment assets rather than from donations.
Private foundations are subject to more restrictive rules than public charities.
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Corporation
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-- a legal entity, either nonprofit or profit, that has legal rights and
privileges created by or under the authority or laws of the state.
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Nonprofit Organization
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-- a group provides services of benefit to the public
without financial incentive. A nonprofit organization is qualified by the Internal
Revenue Service as a tax-exempt organization.
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Association
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-- a group of people joined together for some special purpose or business.
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Faith-based Organization
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-- an organization that is religious in nature and distinguishes itself from government,
public, or private secular organizations.
definition from Wikipedia
the free encyclopedia
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Start-up Fund
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-- funding that is used to establish, or start an organization.
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New Project
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-- a temporary endeavor undertaken to create a unique product or service.
definition from Wikipedia
the free encyclopedia
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Program Expansion
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-- adding components to an already existing program.
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Annual Campaign
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-- a campaign conducted each and every year for the purpose of
raising money to assist in paying a non-profit organization's regular, ongoing expenses.
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Capital Campaign
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-- an intensive fundraising effort to meet a specific financial goal within
a specified period of time for one or more major projects that are out of the ordinary, such
as the construction of a facility, the purchase of equipment, or the acquisition of
endowment.
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Endowment Funds
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-- funds donated to an organization with the intention of it being invested with the principal
remaining intact.
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Operating Expenses
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-- wages, overhead, and depreciation, as they figure into the calculation of
net income.
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